Medtronic falls as Prudential cuts to 'hold'

NEW YORK (CBS.MW) -- Shares of leading medical device maker Medtronic
MDT, +0.16%
were lower in midday trade after Prudential cut the stock to "hold" from "buy", citing valuation concerns in the light of slowing revenue growth. Medtronic shares were trading down $2.20, or 4.2 percent, at $50.45 in recent trades. Yesterday, the company met first quarter earnings expectations as revenue climbed 20.4 percent. "We happily subscribe to the view that Medtronic is the best company in the business, targeting great businesses with leading positions and putting them under excellent management," said Prudential analyst Robert Faulkner. However, the stock is currently vulnerable to sector rotation as other rivals show even steeper growth rates, he said.

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